With memory market conditions rebounding rapidly, Powerchip Semiconductor Manufacturing Corp. (PSMC) has followed the signing of a Letter of Intent (LOI) with Micron Technology by immediately launching a DRAM process advancement plan. This initiative aims to address strong demand from downstream memory IC design customers for higher-capacity, faster DRAM, while capitalizing on opportunities presented by supply shortages and rising prices.

Currently, PSMC’s 12-inch wafer fab in Hsinchu possesses a monthly memory production capacity of 50,000 wafers, primarily providing DRAM and Flash foundry services using 2x-nanometer processes. Due to the global DRAM market’s long-term supply deficit driven by the explosion of AI applications, the company has experienced intense demand pressure from customers in recent months. Consequently, it has decided to initiate a new investment plan to upgrade its memory manufacturing processes.

PSMC stated that to ensure timely execution, its Board of Directors recently approved a capital increase plan specifically for investing in new equipment to enhance DRAM processes. In alignment with the sale of the Tongluo plant to Micron and the strategic cooperation agreement scheduled for signing in the second quarter, the company will begin equipment procurement as soon as the plan is approved at this year's Annual General Meeting of Shareholders. This upgrade will target the existing DRAM production line at the P3 plant, which has a monthly capacity of over 30,000 wafers.

According to the signed LOI, PSMC revealed that in addition to providing long-term advanced backend packaging services for Micron’s DRAM, Micron will assist PSMC in advancing the DRAM processes at the P3 plant. The rapid execution of this technology upgrade will enable PSMC to steadily progress its DRAM foundry processes. This will not only assist domestic and international memory design firms in developing high-specification products with greater capacity and speed but also bolster the competitiveness of the company’s Wafer-on-Wafer (WoW) foundry services to meet the AI application needs of major end-customers.